Venture Capital and Private Equity: A Casebook, 3rd Edition

by Josh Lerner (Harvard Business School and National Bureau of Economic Research); Felda Hardymon (Harvard Business School); Ann Leamon (Senior Research Associate at the Harvard Business School)

• ISBN13: 9780471230694
• ISBN10: 0471230693
• Edition: 3rd
• Format: Hardcover
• Copyright: 2004-10-01
• Publisher: WILEY

Summary

Over the past twenty years, the private equity industry has undergone tremendous growth and sweeping changes.  With the growth of private equity investing, it is imperative that financial professionals fully understand this complex subject.  The cases and notes in this updated edition are designed to provide you with a better understanding of the history of the private equity industrys development and the workings of the industry today. Divided into four modules, the first examines how private equity funds are raised and structured; the second considers the interactions between private equity investors and the entrepreneurs that they finance; the third discusses the process through which private equity investors exit their investments; and the last considers the future of the private equity industry.

Author Biography

Josh Lerner, the Jacob H. Schiff Professor of Investment Banking at the Harvard Business School, is one of the best-known authorities on venture capital. Both his academic and practical activities focus on the structure and workings of these funds. His mix of practical and academic perspectives is at the heart of this book.

Felda Hardymon is a Professor of Management Practice at Harvard Business School and a partner since 1981 at Bessemer Venture Partners, a leading venture capital firm.

Ann Leamon, after co-founding the Center for Case Development at Harvard Business School, now serves as Senior Research Associate dedicated to the Venture Capital & Private Equity class. She came to Harvard after a decade of senior analytical positions in operating companies.

Table of Contents

INTRODUCTION	1	(20)
1 Private Equity Today and Tomorrow	1	(9)
2 Martin Smith: January 2002	10	(11)
MODULE 1. THE PRIVATE EQUITY CYCLE: FUNDRAISING	21	(116)
3 Yale University Investments Office: July 2003	25	(27)
4 Acme Investment Trust: January 2001	52	(12)
5 A Note on Private Equity Partnership Agreements	64	(12)
6 Grove Street Advisors	76	(29)
7 A Note on the Private Equity Fundraising Process	105	(6)
8 Gold Hill Venture Lending	111	(26)
MODULE 2. THE PRIVATE EQUITY CYCLE: INVESTING	137	(212)
9 Adams Capital Management: March 2002	143	(18)
10 Martin Smith: May 2002	161	(16)
11 AIT Group PLC	177	(27)
12 A Note on Valuation in Private Equity Settings	204	(20)
13 A Note on European Private Equity	224	(12)
14 Brazos Partners: The CoMark LBO	236	(21)
15 Montagu Private Equity	257	(19)
16 Metapath Software: September 1997	276	(12)
17 A Note on Private Equity Securities	288	(8)
18 Endeca Technologies (A)	296	(23)
19 Chengwei Ventures and the hdt° Investment	319	(17)
20 A Note on Private Equity in Developing Countries	336	(13)
MODULE 3. THE PRIVATE EQUITY CYCLE: EXITING	349	(84)
21 Apax Partners and Xerium S.A.	353	(20)
22 The Exxel Group: March 2001	373	(25)
23 A Note on the Initial Public Offering Process	398	(6)
24 Between a Rock and a Hard Place: Valuation and Distribution in Private Equity	404	(29)
MODULE 4. THE PRIVATE EQUITY CYCLE: NEW FRONTIERS	433	(106)
25 Battery Ventures	440	(23)
26 Accel Partners' European Launch	463	(20)
27 In-Q-Tel	483	(22)
28 A Note on Corporate Venture Capital	505	(5)
29 3i Group PLC	510	(29)
Appendix: A Note on Private Equity Information Sources	539	(17)
Glossary	556	(7)
Index	563